Around the world, food prices remain high even though the cost of grains, vegetable oil, dairy, and other commodities have fallen from their record peaks, reports AP News.
According to the United Nations, food costs have fallen for 12 months in a row, supported by prosperous harvests in places like Brazil, and the wartime agreement that allows Ukraine grain shipments out of the Black Sea.
However, the relief that the market is experiencing has not yet made it to store shelves. This has contributed to the high inflation in the U.S. and Europe and continues to facilitate food insecurity in the rest of the world.
In the U.S., where food prices were up 8.5 percent last month compared to last year, “75 percent of the costs are coming after it leaves the farm. It’s energy costs. It’s all the processing costs. All the transportation costs. All the labor costs," said Joseph Glauber, former chief economist at the USDA.
Outside the U.S., the strong dollar is also to blame for high prices. Prices for crops like corn and wheat are quoted in dollars per ton, which leads to higher prices in local currency terms. Full Story
Related: Video: Paco Underhill on Global vs Local Cuisine; Americans' Financial Concern Grows